We model the existence of an equilibrium in which analysts adopt a threshold reporting strategy to convey their forecasting ability. Under this strategy, an analyst issues a forecast only if the realized value of her private signal exceeds a threshold value. Higher-ability analysts choose higher...

In this paper we propose a nonparametric test for money managers' market timing ability and apply the analysis to a large sample of mutual funds that have different benchmark indices. The test (i) only requires the ex post returns of the funds and the benchmark portfolios; (ii) isolates timing...

An important milestone often reached in the life of an activist engagement is entering into a "settlement" agreement between the activist and the target's board. Using a comprehensive hand-collected data set, we analyze the drivers, nature, and consequences of such settlement agreements....

With the in-depth development of informatization, the role of new ventures and small and micro enterprises in economic growth has become increasingly prominent. However, rare literature systematically studies the impact of informatization on entrepreneurship. Based on the data from the 2011...

The promise of contingent convertible capital securities (CoCos) as a "bail-in" solution has been the subject of considerable theoretical analysis and debate, but little is known about their effects in practice. In this paper, we undertake the first comprehensive empirical analysis of bank CoCo...

Using both a linear regression method and a probability-based method, we find that on average, analysts place larger than efficient weights on (i.e., they overweight) their private information when they forecast corporate earnings. We also find that analysts overweight more when issuing...

Using both a linear regression method and a probability-based method, we find that on average analysts place larger than efficient weights on (i.e., they over-weight) their private information when they forecast corporate earnings. We also find that analysts over-weight more when issuing...

Records of more than half a million participants in more than six hundred 401(k) pension plans indicate that participants tend to use a small number of funds: The number of participants using a given number of funds peaks at three funds and declines after more than three funds. Participants tend...

We propose a tractable model of dynamic investment, division sales (spinoffs), financing, and risk management for a multi-division firm that faces costly external finance. The model highlights the importance of considering the intertwined nature of the different policies. Our main results are as...